Most college students take out multiple loans to cover expenses like tuition, books, and room and board. When it’s time to repay those loans, however, you’re responsible for numerous monthly bills, often at different interest rates. By consolidating student loans, you go from multiple payments to one single payment each month. And the best part is that your new payment may have a lower minimum, allowing you to pay off your principle balance more quickly.

No one enjoys paying dozens of bills each month, but the benefit of student loan consolidation goes far beyond the time you’ll save writing checks. If you’re currently paying the minimum on your loans, you’re making mostly interest payments, rather than paying down principle (the amount of money you borrowed initially). Making minimum, interest-only payments prolongs the time it takes to pay off your loan, as well as increases the total amount of money you repay.

When you consolidate your loans, you get one interest rate, and your new minimum will likely be lower than what you were paying before. This frees up more money to pay down the principle, and that’s what saves money and eliminates your debt sooner.

It’s easy to consolidate student loans.
• Step 1: Submit a loan application requesting the same amount of money you currently owe on your student loans.
• Step 2: Your lending institution will pay off your existing loans after you’re approved.
Step 3: You make one monthly payment to your new lender.